India's Steel Ministry is close to unveiling a $529 million financial package to reduce CO2 emissions in the steel sector.

The Indian Ministry of Steel is close to finalizing a $529 million budget package to promote programs aimed at reducing carbon dioxide emissions in the steel sector and is likely to be unveiled within three months, government sources said on Tuesday, June 30.

The fiscal package titled "National Strategy for Sustainable Development of Secondary Steel" will be sent to the Cabinet of Ministers of India for final approval before implementation, the sources said.

The initiative will apply to all steel producers across the country, although a significant portion of the funds will be directed to secondary steel producers.

It aims to encourage, through tax incentives, the introduction of clean technologies and alternative materials in various steel production processes to reduce carbon dioxide emissions in the industry.

The steel industry is among the industries with the highest carbon emissions in the country, accounting for 10-12 percent of India's total greenhouse gas emissions.

Official data shows that India's steel industry currently has an emission intensity of 2.55 million tons of carbon dioxide per ton of crude steel, significantly higher than the global average of about 1.9 million tons of carbon dioxide per ton of steel.